Starting this year, the Affordable Care Act requires most Americans to have health insurance or face a tax penalty. The deadline to enroll is March 31, 2014.
Did you know that the law provides financial help for people with low and moderate incomes? You can choose local health plans.
If you need health insurance for your family, now is the time to learn about your options, know the deadlines to sign up, and where to go for help.
Get ready to apply for coverage
An important first step is to gather information before you pick a plan and apply for health insurance. Your coverage options and costs depend on your family size, how much money you earn and other factors. Take a moment to answer these three questions:
How many people are in your household?
What is your expected total household income for 2014?
What is the date of birth and Social Security number of each person you want to enroll in a health plan?
Think about your family’s health care needs and medications. It’s important to set a budget before you shop for a plan. How much can you afford to spend every month on health insurance?
Learn about the local plan options
There are many community resources to help you understand your options. You can get help from an insurance company, a licensed insurance agent, navigators and certified application counselors in your community or through the Health Insurance Marketplace at www.healthcare.gov.
Look Beyond the Premium Cost
To compare plans and choose the best plan for your family, be sure to look beyond the monthly premium (the amount you pay each month for health insurance) to see the total costs of a visit to the doctor, filling a prescription, getting an x-ray or being hospitalized. Find out what your share of those costs will be. To learn more about health insurance and how to calculate your total costs, go to chooseHAP.org.
There’s more than one way to enroll in a health plan
There are three ways to buy a health care plan — through insurance companies like HAP, through the Health Insurance Marketplace at healthcare.gov, or through an insurance agent. There are also navigators in your community to help guide you through the Health Insurance Marketplace. You can enroll by phone, online or in person.
Depending on your income level and other factors, you may be eligible for cost savings that are available only when you buy a plan through the Health Insurance Marketplace.
To find out if you are eligible for an advanced premium tax credit (APTC) that can be applied to your monthly premium or lower copays, coinsurance and deductibles, you will need to provide information about yourself, your household and your income when you apply for coverage.
Don’t’ miss your opportunity to get health insurance for your family
The recent Enroll America survey found that 81 percent of uninsured adults do not know that March 31, 2014 is the last day to enroll in a plan for 2014 coverage.
After March 31, 2014, consumers can purchase new 2014 health plans only if they have a qualifying life event like a job loss, birth, marriage or divorce.
The date that your coverage starts depends on when you enroll. If you enroll between February 20 and March 15, your coverage can start as early as April 1. And if you enroll between March 16 and March 31, your coverage will start on May 1.
Your coverage won’t be effective unless you pay your first month’s premium before the due date.
What happens to those who don’t enroll by March 31, 2014?
If you miss this deadline you won’t have coverage for 2014 and will have to wait until the next open enrollment period (possibly subject to a penalty).
Open enrollment for 2015 plans begins on November 15, 2014 and ends on January 15, 2015.
Will I have to pay a tax penalty if I missed the 2014 enrollment deadline?
Most people who do not have qualified health coverage will face tax penalties. The level of these penalties is set to increase over the next several years.
For the 2014 tax year, the penalty will be $95 per person or one percent of a household’s taxable income, whichever is greater.
The penalty amount decreases by one-half for dependents under the age of 18. In 2015, the penalty jumps up to $325 per person, or two percent of a household’s taxable income.
Questions about the Affordable Care Act or how health insurance works?
If you want peace of mind knowing that you’re taking care of your family’s health and well-being, HAP is here to help. Go to chooseHAP.org or call (855) 948-4427, 8:00 a.m. – 8:00 p.m. MondaySaturday, 11:00 a.m. – 4:00 p.m. Sunday. Email: personalalliance@hap.org
Editor’s Note: Lori Rund is the Vice President, Product Management and Market Intelligence at Health Alliance Plan based in Detroit, Michigan.
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